SVB Financial Group agreed today to buy Boston Private Financial Holdings in Boston for $ 900 million in cash and stock.
This is a big deal for SVB, which has earned a reputation in its 37-year history as a bank that is suited to startups as well as enterprise and private equity investors. Boston Private, established in 1987, has approximately $16.3 billion Assets under management compared to SVB Asset Management’s $ 1.4 billion in related assets.
SVB, which formed its wealth advisory business in 2011, has been pushing more aggressively in wealth management for several years, hiring Yvonne Butler, who previously led wealth strategies at Capital One in mid-2018 .
Butler has since been adding members to the bank’s wealth management team, telling Business Insider in the final year of the job that “I mainly look at my A. Retention strategy . . Customers are already here. We have helped them grow their fund or business – and I see my role as a private bank and wealth advisor. “
SVB’s bid is outlined to strengthen its ties with wealthy individuals who already have business deals with the bank, with its president and CEO Greg Baker today releasing a release about the new tie-up Said in: “Our customers rely on us to help increase their chances. He had success – both in his business and personal life. “
Butler will lead a joint private banking and wealth management business with Anthony Dechellis, who has been CEO of Boston Private for the past two years. DeChellis joined the organization after a short stint as CEO of Credit Suisse Private Banking (Americas) for more than seven years as president of crowdfunding platform OurCrowd and before that.
As part of the deal, Boston Private shareholders will receive 0.0228 shares of SVB Common Stock and $ 2.10 cash for each of their shares.
Bank stocks were generally brightened in 2020, but as the Boston Globe notesSVB’s stock is up more than 60% in the last three years, as its focus is on Tech Inc, while Boston Private’s shares have fallen by 45%.